In this equity research report, analysts Carl Ragnartz and Oskar Norrström take a closer look at Alma Media, a media company based in Finland. Alma Media is a well-established Finnish paper publisher that has undergone a change of strategy since 2018, thus setting new peers within the SaaS sector. The Company is currently trading at an attractive multiple of 9.5x EV/EBITDA which shows a discount of 51.3% to peer median. A target multiple of 14.3x, which is backed by an DCF indicates an upside of 57.0%.
Investment highlights:
- Change of strategy, setting new peers which allows a higher target multiple.
- A decrease of COGS due to the new strategy of digitization, leading to margin expansion
- Continued geographical expansion within Europe with a proven track record